Answer:
Which is a correct statement regarding sandwich prices, based on the histogram? The distribution of sandwich prices is skewed left.
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Answer:
WACC = 0.16637 OR 16.637%
Explanation:
WACC or weighted average cost of capital is the cost of a firm's capital structure which can comprise of debt, preferred stock and common equity. The WACC for a firm with only debt and common equity can be calculated as follows,
WACC = wD * rD * (1-tax rate) + wE * rE
Where,
- w represents the weight of each component based on market value in the capital structure
- r represents the cost of each component
- D and E represents debt and equity respectively
To calculate WACC, we first need to calculate the Market value an cost of equity.
The market value of equity = 30 million shares * $40 per share
MV of equity = $1200 million
The cost of equity can be found using the formula for Price today (P0) under constant growth model of DDM.
P0 = D1 / (r - g)
40 = 4 / (r - 0.07)
40 * (r - 0.07) = 4
40r - 2.8 = 4
40r = 4+2.8
r = 6.8 / 40
r = 0.17 or 17%
MV of debt = 40 million * 96.5% => $38.6 million
Total MV of capital structure = 38.6 + 1200 = 1238.6 million
WACC = 38.6/1238.6 * 0.08 * (1-0.33) + 1200/1238.6 * 0.17
WACC = 0.16637 OR 16.637%
Answer:
a gain for 6,000 dollar will be recognized
the new bonds basis will be of 22,000
Explanation:
Total proceeds from the sale:
22,000 in bonds plus 3,000 cash for a total of 25,000
The basis of the bond gifted was 19,000
Therefore, there is a realzied gain on sale for the difference which is 6,000 dollars.
The new bonds are worth 22,000 therefore their basis will be of 2,,000 dollars
Partner Airline
Partnerships between or among airlines are known as airline alliances. Through these partnerships, airlines can pool resources, add or expand partner routes, and even provide the opportunity for customers to accrue and redeem miles through one another's rewards systems.
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For the spring of 2020, I'm looking into multi-city flights from Seattle to Rome and Rome to Seattle. On Lufthansa, premium economy is not an option for the dates I'm considering. However, I can discover routes flown by Lufthansa on the United website and have the option of choosing premium economy. However, I am unable to choose seats on the United website. It informs me "On this flight, there are no available advance seat assignments on united.com. You can go to the operating airline's website for more information after completing your purchase." I am less than certain that we will truly enter premium economy and may instead wind up in ordinary economy as a result of this. Please share your insights into this kind of reservation! Thanks!
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